PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square metres are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period: If PIR uses dual-rate allocation and the direct method, the variable cost allocation rate for janitorial services will be:
A) $0.50 per square metre
B) $0.61 per square metre
C) $0.70 per square metre
D) None of the above

Question

PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square metres are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period:  If PIR uses dual-rate allocation and the direct method, the variable cost allocation rate for janitorial services will be:
A) $0.50 per square metre 
B) $0.61 per square metre 
C) $0.70 per square metre 
D) None of the above

Quizplus · Accepted Answer

The Answer of PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square metres are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period:  If PIR uses dual-rate allocation and the direct method, the variable cost allocation rate for janitorial services will be:
A) $0.50 per square metre 
B) $0.61 per square metre 
C) $0.70 per square metre 
D) None of the above

PIR Corporation Has 2 Support Departments and 2 Operating Departments